AWS Marketplace Co-Sell Guide for ISVs
Ever since AWS Marketplace launched in 2012, the hyperscaler has been investing in new and innovative ways to incorporate customers, system integrators, and partners alike into its API ecosystem. Today, co-selling on AWS Marketplace has become so lucrative, ISVs such as Salesforce, CrowdStrike, Palo Alto Systems, and Okta have generated $1 Billion in revenue from AWS Marketplace alone.
According to research from Canalys on co-selling with AWS, partners in AWS’s ecosystem see serious benefits selling with AWS Marketplace, including streamlined procurement, expedited deployment, and reduced implementation.
- 65% of partners see higher close rates thanks to co-selling with AWS.
- 54% of partners made larger deals when co-selling with AWS.
- 30% of partners achieved shorter sales cycles when co-selling with AWS.
- Partners that frequently co-sell with AWS see 51% more revenue growth than those that do so infrequently.
- Frequent co-sellers are also 67% more likely to secure significantly larger (at least 25% larger) deals.
- Co-selling with AWS improves close rates for 65% of partners and results in larger deals for 54%.
Here’s a look at everything you need to know about co-selling with AWS, as well as how you can incorporate AWS Marketplace into your Cloud GTM strategy with Invisory.
What is Co-Selling on AWS Marketplace?
Co-selling with AWS is when third-party ISVs sell their solution alongside AWS AEs or field sales reps, driving bigger deals both for the ISV and AWS. By getting listed and transactable on AWS Marketplace, AWS sales reps can introduce third-party solutions to their book of business. In turn, AWS customers can leverage their committed spend budget to procure third-party solutions. AWS offers a number of resources to help jumpstart co-selling, including AWS Partner Network, ISV Accelerate, incentives, and more.
While AWS charges a nominal 3% fee for selling through marketplace (and 1.5% for renewals), marketplace deals often lead to faster sales cycles, streamlined procurement, and larger deals, meaning the fee more than pays for itself in the long run.
What is the AWS Partner Network?
The AWS Partner Network (APN) is your entry point to a global ecosystem built to help you build, market, and sell smarter. Whether you’re launching something new or scaling fast, joining the APN unlocks access to tools, training, and go-to-market support.
Learn more about APN here.
AWS Committed Spend
One of the largest drivers of growth for co-selling on AWS (and other hypercaler cloud marketplaces) is cloud commitment, or committed spend. Commitments continue to shatter records, with AWS commitments totaling $189 Billion as of Q1 2025.
Many AWS customers sign annual or 3-year contracts with AWS for upfront discounts, in exchange for committing to spend a certain amount with the hyperscaler on compute and other costs. If an ISV meets certain requirements, their third-party AWS Marketplace solution can help burn down their AWS commitment.
ISVs can tap into leftover or unused committed spend budgets to help ease the conversation with prospects, especially if that money is set to expire. After all, no one wants to leave cash on the table.
Strategies for Co-Selling with AWS
In general, ISVs co-selling with AWS need to do the following in order to scale their marketplace motion into a reliable revenue-generating machine.
- Align with your internal team early and often
- Establish a repeatable formula for your sales, marketing, and operations team
- Keep ACE updated, especially with new deals
- Ensure you remain transparent with lead sharing
- Account map with AWS to surface new and existing customers
- Bring your AWS Rep a new customer
- Understand how much your AWS service consume when product is deployed
- Understand how AWS reps are compensated
- Ask if your customer has committed spend budget
- Customize terms with Private Offers
When you’re co-selling with AWS, you’ll want to avoid:
- Bringing partners in too late
- Lack of clear ownership and leadership
- Expecting a lot of benefits without providing value
AWS’s Characteristics of Successful Sellers (COSS)
AWS offers their Characteristics of Successful Sellers (COSS) framework to help ISVs get started.
Building a “Better Together” Story with AWS
AWS is interested in co-selling third-party solutions that benefit the tech giant’s cloud business. In general, you will want to highlight the following qualities in your AWS solution brief and first call deck, which are key co-sell assets Invisory can help you create:
- Does your solution from AWS compute? If so, do significant increases in usage also lead to significant increases in compute?
- Does your solution save AWS’s internal team time and energy?
- How does your solution fit into the AWS ecosystem? Talk about your solution in terms of AWS products such as Amazon EC2, Amazon RDS, Amazon Glacier, Amazon Direct Connect, and others
- What pain point does your solution solve for AWS customers?
- Does your solution make AWS products more efficient and secure?
- Do you have a customer story / case study that helps answer these questions?
By being able to answer these questions in your GTM collateral, you will have a much better chance of reaching co-sell success with AWS.
Co-Sell Automation on AWS Marketplace
Cloud GTM platforms like Invisory help ISVs streamline deal creation and management, including registering deals in both an ISV’s CRM and ACE – all from one platform.
Before you choose a co-sell outsourcing partner, be sure to check what is included in the scope of work.
Co-Sell Outsourcing on AWS Marketplace
Getting started with co-selling can be challenging for ISVs that are new to the AWS ecosystem, which pioneered APIs. For this reason, more ISVs are looking to cloud marketplace experts to help streamline the co-selling process. Outsourcing co-sell can include having a partner help you build a cloud GTM strategy, register co-sell deals with AWS, and even assist with building relationships with AWS reps.
Before you choose a co-sell outsourcing partner, be sure to check what is included in the scope of work.
Invisory for Cloud Marketplace Success
Cloud marketplaces offer ISVs countless opportunities, but getting listed, transactable, and putting a cloud GTM strategy in motion takes time.
With Invisory, you can access API integrations, expert-built playbooks, a dedicated customer support manager and everything else you need to operationalize your cloud marketplace listings and start generating leads.
Accelerate success on AWS Marketplace, as well as other cloud marketplaces, including Azure, Google Cloud Marketplace and the Salesforce AppExchange.Reach out today.
FAQ
Who are the primary teams involved in AWS co-selling?
- Partner Development Manager (PDM): Your inside connection at AWS. The PDM teams up with your alliance lead to build joint go-to-market plays and unlock business development programs that move the needle.
- Account Manager (AM): This person drives adoption, engagement, and expansion of AWS services on the ground.
- Partner Success Manager (PSM): Focused on your success. The PSM helps accelerate usage of your software inside the AWS ecosystem, making sure you’re top of mind (and top of stack).
- AWS Marketplace Customer Advisor: Your Marketplace champion. This role drives adoption of AWS Marketplace for both buyers and sellers.
- Solutions Architect: The technical strategist. Ensures that customers not only adopt AWS services but also get real, measurable value from them.
- ISV Success Manager (ISM): Your go-to for co-sell alignment. The ISM connects the dots between your solutions and AWS sales motions to land you in the right deals with the right customers.
Who are the different types of co-selling with AWS?
- MSPs consultants (Advise)
- SIs and MSPs (Design)
- VARs and ISVs (Build)
- ISVs, SIs, and MSPs (Adopt)
- Manage (MSPs and SIs)
What are the steps for co-selling with AWS?
- Get listed and transactable, which involves API integrations, creating a listing landing page, as well as technical and legal review
- Register deals in APN Customer Engagements (ACE)
- Engage with the right AWS Resources, such as ISV Accelerate
- Start a joint sales cycle
- Create an AWS Marketplace private offer
- Close the sale
AWS Incentives and Partner Programs
To help ISVs reach success, AWS Marketplace offers a number of incentives and partner programs to help accelerate success
AWS ISV Accelerate
ISV Accelerate offers resources, special training, webinars, and visibility with the AWS sales teams. Check out our guide on ISV Accelerate to learn more about the requirements.
AWS Marketplace Incentives
The AWS Marketplace Incentive programs provide cash and credit incentives for new customers procuring through AWS Marketplace, such as Marketing Development Funds (MDF).
AWS Partner Paths
ISVs can also benefit from enrolling in AWS Partner Paths, including software and services. Check out our AWS Partner Paths guide to learn more.
